Treehouse recently did something quite interesting - using half of the profits from the protocol to buy back $TREE. How does it work? It means putting 50% of the subsequent earnings directly into the market to buy $TREE. The coins bought back are not destroyed, but instead thrown into the DAO treasury, which can be used for community incentives or expanding the ecosystem.

Where do their profits come from? They mainly rely on on-chain arbitrage strategies and staking rewards, which are backed by real money. This kind of play is actually not new in DeFi, but being able to combine buybacks with DAO governance to give token holders a long-term expectation is still quite interesting. After all, there are too many projects now that can only make empty promises, and very few are truly backed by cash flow for buybacks.